Description of the event
The company released the 2022 earnings report and the earnings forecast for the first quarter of 2023.
In 2022, the company achieved total operating income of 4,097 million yuan, YoY 36.16%; net profit of 275 million yuan to the mother, 50.81% of YoY; after deducting net profit of 255 million yuan, YoY 90.62%.
2023Q1 expects to achieve net profit of 85 to 105 million yuan, YoY 2678% to 3331%; it is expected to achieve net profit of 65 to 85 million yuan after deduction of the mother.
Incident reviews
The company's business fully recovered, and profits grew rapidly in the first quarter. In 2022, the company adjusted its organizational structure, and the industrial automation business group continued to optimize the organization and optimization of the R&D side, supply chain side, and market side. At the same time, the company's NEV driving business introduced strategic investors, increased investment in the photovoltaic business, and transferred minority shareholder shares of the Wuxi Elevator subsidiary; in 2022, the NEV and PV business contributed mainly to growth, and the industrial automation and data center business also recovered to a certain extent. In the first quarter of 2023, while continuing the overall revenue growth pattern of various sectors in 2022, the company's gross margin also increased compared to the same period last year due to scale effects, material prices, etc., and net profit of YoY to the mother reached 2678% to 3331%.
The main business is growing steadily, and the data center business is expected to benefit from the rapid development of the domestic digital economy.
The company's traditional business includes industrial automation and data centers, where the inverter business accounts for more than 50%. The company's low-voltage inverters lead the market share among domestic brands. In the future, it will focus on promoting industrial solutions and new products for servos and PLCs to continuously enhance the core competitiveness of servos and PLCs; the data center business accounts for about 20% of revenue. The company focuses on R&D, production and application of integrated solutions for modular UPS and data center key infrastructure. With the rise in prosperity in domestic digital economy-related industries and the rapid development of artificial intelligence and other fields, the company The data center business is expected to benefit.
Growth businesses have taken advantage of the momentum, and profits have improved at the same time as rapid growth. The company's growing business includes new energy vehicles and optical storage. In the field of photovoltaic storage, the company's photovoltaic products focus on the distributed market. The products cover grid-connected inverters, off-grid inverters, energy storage inverters, and terminal accessories. They can be used to collect and connect to the grid. A channel network covering many countries around the world has been established. At the same time, the products are continuously iterated. At the same time, the company further implemented capital increases for PV Holding subsidiaries in 2022. A breakthrough in passenger cars Projects are targeted and orders are obtained in batches, and the profit situation is expected to improve as the scale of the business expands.
Investment suggestions: The company has been established for more than 20 years, the organizational structure has been continuously optimized, internal governance has been continuously strengthened, core members have been deeply involved in the industry, and many equity incentive plans have enhanced their centripetal strength. The business is based on the two main businesses of industrial automation and data centers, and is fueled by the new energy and optical storage business. With the gradual recovery of domestic and overseas markets, Taiyi's performance is expected to fully recover. While the main business is growing steadily and the growth business is growing rapidly, profits are expected to gradually improve. The company's 2022-2024 EPS is expected to be 0.35/0.61/0.86 respectively, corresponding to the company's closing price of 12.22 yuan on April 12, and the 2022-2024 PE is 33.0/19.0/13.5 respectively, maintaining the “increase in holdings - A” rating.
Risk warning: macroeconomic and policy risks; risk of raw material price fluctuations and shortages; risk of growth business expansion falling short of expectations; risk of exchange rate fluctuations; risk of demand falling short of expectations, etc.